The Weekly Options News Roundup – 8/22/2014

Your weekly recap of CBOE features, options industry news and VIX and volatility-related articles from print, broadcast and online and social media outlets.

VIX: Broader Not Broken
In this week’s Striking Price column in Barron’s, Steve Sears highlights a recent study by Goldman Sachs suggesting that “VIX is not really broken but that investors no longer understand entirely what motivates the fear gauge.”

“A New Vision of VIX” – Steven M. Sears, Barron’s

“12 Key Stats Re: VIX Index” – Matt Moran, CBOE Options Hub

Over the past week or so, VIX cash has been drifting lower while VIX futures have held firm.  CBOE’s very own “Mr. VIX,” Russell Rhoads, takes a closer look at contango and backwardation.

“Quantifying VIX Contango and Backwardation” – Russell Rhoads, CBOE Options Hub

VIDEO: “Volatility 411” – Dan Deming, CBOE TV

Options – Protection Before the Storm
There has been wide speculation about the direction the Fed will take when it comes to raising interest rates.  Yet this uncertainty, coupled with continued geo-political matters around the globe, has not caused a pronounced spike in volatility.  As a result, options continue to be an efficient way to protect a portfolio.

“Jana Bought $4 Billion of Protection as Volatility Waned” – Miles Weiss, Bloomberg